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I think this kind of psycho is the norm in the upper echelon of government and business.

We shouldn't think it is only eBay that is rotten.

If this was the norm, society would have collapsed long ago

I think the length of time it has taken for our society to collapse is a testament to the quality of civilization we destroyed (are destroying).

What collapse? Information and science is being preserved; trust is so high that we're all willing to accept numbers in a database as being money; kids are being educated now much better than I was.

Why? I sense assumption that decency at the top is required for society to function.

Counterpoints would be (sadly):

a. most of the history is wars.

b. Slavery was a norm for a very very long time.

c. North Korea.

It seems as simplistic to say it's the norm as it is to say it's an isolated case.

Why not just prosecute where there is evidence of wrongdoing.

None of the perpetrators of the 1985 bombing in Philadelphia - committed by police - ever got hauled in front of a court [1]. Abuse of power rarely gets punished if you are high enough in the chain.

[1] https://en.wikipedia.org/wiki/1985_MOVE_bombing

Richard Helms destroyed documents regarding the CIA and their work in torturing US citizens and died and free man.

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